DoorDash downgraded to Underweight from Neutral at Piper Sandler

Piper Sandler analyst Alexander Potter downgraded DoorDash (DASH) to Underweight from Neutral with a price target of $40, down from $227. The analyst recommends pairing a long position in Uber (UBER) against DoorDash. Vehicle prices are near all-time highs, and a quick reversion to historical pricing seems unlikely, Potter tells investors in a research note. As a result, he thinks "cash-strapped" consumers will increasingly opt to hail rides instead of trying to replace old cars. While a beneficiary of increasing labor supply, DoorDash does not benefit from growing demand for ride-hailing, says the analyst. He thinks DoorDash "will face more recessionary pressure on revenue."